4 ms·
In the US that's called a "tax credit". A "deduction" is something that reduces the amount of income used for tax calculations. So I thought you meant you got
by EE84M3i 5y ago
In the US that's called a "tax credit". A "deduction" is something that reduces the amount of income used for tax calculations.
So I thought you meant you got 6000 back because your university fees became deductable. At 25% tax rate, that would be 24,000 in fees. It sounds like you got a tax credit.
- tinco 5y agoHmm, you're right. So there's one thing I didn't mention and that is that my income was abnormally high that year because I was bought out of the company I resigned from. Pushing me into the 50% tax rate territory. This might have made the deductibles that much more significant. I would have to look up the exact numbers to know for sure.